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Exercise 6 (Chapter 7) 1.: STA2204.tut6

The document provides information about price indices and calculations for various goods between different years: 1. It shows the prices of frozen peas, petrol, and lamb in 1986, 1991, and 1996 in Brisbane and calculates the price indices for each item between years using 1986 as the base year. 2. Price data and calculations are given for a "shopping basket" in 1990 and 1995, computing Laspeyres and Paasche indices. 3. Price indices are calculated for 1990 and 1992 if 1991 is used as the base year instead of 1990. 4. Price and index data for flour and eggs in 1980 and 1990 is shown, along with calculations for individual item indices and a simple aggregate index

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29 views1 page

Exercise 6 (Chapter 7) 1.: STA2204.tut6

The document provides information about price indices and calculations for various goods between different years: 1. It shows the prices of frozen peas, petrol, and lamb in 1986, 1991, and 1996 in Brisbane and calculates the price indices for each item between years using 1986 as the base year. 2. Price data and calculations are given for a "shopping basket" in 1990 and 1995, computing Laspeyres and Paasche indices. 3. Price indices are calculated for 1990 and 1992 if 1991 is used as the base year instead of 1990. 4. Price and index data for flour and eggs in 1980 and 1990 is shown, along with calculations for individual item indices and a simple aggregate index

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RUHDRA
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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STA2204

Exercise 6 (Chapter 7)

1. Shown in the table below are the prices of a 500g packet of frozen peas, 1 liter
of super grade petrol and a 1 kg leg of lamb in Brisbane for each of the June quarters
1986, 1991 and 1996.

Item Unit Price


1986 1991 1996
Frozen peas 500g 0.88 1.23 1.36
Petrol (super) 1L 0.45 0.59 0.66
Leg of lamb 1 kg 4.53 5.43 5.90

Using a base year of 1986, find the price index for each item in 1991 and 1996.
(1991 : 139.77, 131.11, 119.87)
(1996 : 154.55, 146.67, 130.24)

2. A small ‘shopping basket’ consists of milk, bread and fish. In 1990 the basket
contains 200g of meat, 400g of bread and 50g of fish, with the prices per 100g being,
respectively, $1.20, $0.80 and $1.60. In 1995 the basket contains 150g of meat, 300g
of bread and 80g of fish, and the prices per 100g are now $1.50, $1.00 and $1.50.
Taking the index for 1990 as being 100, determine:
(a) the Laspeyres index; (LP = 121.09 LQ = 85.625)
(b) the Paasche index. (PP = 117.70 PQ = 83.225)

3. Using 1990 as the base year, the price indexes of commodity in 1991 and 1992 are
115 and 125 respectively. Calculate the price indexes for 1990 and 1992 if 1991 is
taken as base year. (86.9565, 108.696)

4. The table shows the price, in cents, of flour and eggs in 1980 and 1990.

1980 1990
Flour (1 kg) 30 54
Eggs (1dozen) 50 78

Taking 1980 as the base year, find


(a) the price index of a kg of flour;
(180)
(b) the price index of one dozen eggs; (156)
(c) the simple aggregate price index for the total cost of one kg of flour and one
dozen eggs. (165)

STA2204.tut6

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